Bloomberg

Bloomberg | Quint is a multiplatform, Indian business and financial news company. We combine Bloomberg’s global leadership in business and financial news and data, with Quintillion Media’s deep expertise in the Indian market and digital news delivery, to provide high quality business news, insights and trends for India’s sophisticated audiences.

Cement Prices Rise Rs 25 Per Bag In February

Cement prices increased by Rs 24-25 for a 50 kilogram bag in February as compared to the previous month amid falling cost and rising demand, according to a report.

The hike in the cement prices came after a “protracted stall” following the rollout of the goods and services tax in July 2017, said Crisil Research in its report. The increase would help the cement industry increase profitability and margins, it added.

“The recent steep hikes in cement prices will boost the operating profitability of manufacturers even as costs are descending and demand growth ascending,” Crisil said.

The southern region had the steepest hike, where Hyderabad witnessed a rise of Rs 77 per bag, followed by Rs 62 per bag in Chennai and Rs 52 per bag in Bengaluru.

While other regions had a moderate increase, with Rs 26 in the west followed by Rs 12 in the east, Rs 7 in the central region, and Rs 4 per bag in the north, the report said. “This upends the downtrend in cement prices seen since the rollout of the GST”

Even in the current financial year, cement prices have seen a decline of 2.5 percent between April 2018 and January 2019 despite demand growth of 12.5-13 percent in the nine months.